Altruism, Fertility, and the Value of Children: Health Policy Evaluation and Intergenerational Welfare
Javier Arturo Birchenall
University of California, Santa Barbara - Department of Economics
Rodrigo R. Soares
University of Maryland - Department of Economics; Pontifical Catholic University of Rio de Janeiro (PUC-Rio) - Department of Economics; Institute for the Study of Labor (IZA)
IZA Discussion Paper No. 2783
This paper accounts for the value of children and future generations in the evaluation of health policies. This is achieved through the incorporation of altruism and fertility in a "value of life" type of framework. We are able to express adults' willingness to pay for changes in child mortality and also to incorporate the welfare of future generations in the evaluation of current policies. Our model clarifies a series of puzzles from the literature on the "value of life" and on intergenerational welfare comparisons. We show that, by incorporating altruism and fertility into the analysis, the estimated welfare gain from recent reductions in mortality in the U.S. easily doubles.
Number of Pages in PDF File: 34
Keywords: value of life, mortality, fertility, altruism, intergenerational welfare, willingness to pay
JEL Classification: J17, J13, I10working papers series
Date posted: May 17, 2007
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo6 in 0.859 seconds